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Basic Question 2 of 5

To create a synthetic forward contract, we should ______.

A. long a call, short a put, and long a risk-free bond
B. short a call, long a put, and long a risk-free bond
C. long a call, short a put, and long or short a risk-free bond

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Craig Baugh

Craig Baugh

Learning Outcome Statements

explain put-call forward parity for European options

CFA® 2025 Level I Curriculum, Volume 5, Module 9.